882.51/1169: Telegram

The Acting Secretary of State to the Chargé in Liberia (Bundy)

54. Your 59, August 21, 8 p.m. [a.m.]

(1)
as Legation ever received official communication from Liberian Government of the action taken at special session of Legislature called to consider loan plan?
(2)
his Government finds it difficult to understand the opposition which has been shown by Liberia to the proposed loan plan, especially as the matter was thoroughly discussed in 1919 at Paris with President King and assurances given by him of his approval and support of the loan. It is very difficult furthermore to understand why the Legislature should have passed a resolution regarding this plan without any information having been communicated at once to the Legation. The Department desires that you will seek an early opportunity of stating orally to the President the above considerations [Page 104] and inform him that the American Government has learned with surprise of his strong opposition to the loan plan and cannot understand his unwillingness to state frankly the objections which have been found to the proposed agreement and that his attitude reflects, not only an unfriendly spirit, but a lack of consideration which the United States rightly expected from the Chief of State of a friendly nation. You will point out that the present financial and economic condition of Liberia is reported to be deplorable and that no possibility presents itself for Liberia to extricate itself unaided from its present difficulties. This Government, prompted solely by its friendly interest in and unselfish desire to aid Liberia, offered the proposed loan under a most equitable and sound arrangement. Although Liberia is sorely in need of the assistance offered this Government has no desire to force a loan on Liberia. It must know however what Liberia proposes to do.
(3)
our 80 October 27th. Communicate following to Liberian Government. This Government had previously learned with surprise from unofficial sources of the intention of the Liberian Government to send a commission to Washington to discuss the amendments to the loan plan. It viewed this project with concern since it involves heavy expenditure only to be met by further placing the Liberian Government in debt. It felt the views of the Liberian Government could readily and most easily be brought to the Department’s attention through the Legation which has always been the channel of communication in such matters. However, if the desire of the Liberian Government to send a commission to Washington was in any way based upon a feeling that it could more frankly and honestly express to the Department its views oil any and all subjects concerning the welfare of Liberia by such method, the Department would be disposed to meet the wishes of the Liberian Government in this respect. Since, however, negotiations growing out of such an arrangement would involve great expense and a serious delay in rectifying Liberia’s difficulties, this Government would expect and require that the said commission be fully authorized to reach a definite agreement which would be accepted and put into force without delay by the Liberian Government. Furthermore, inasmuch as President King is authorized to negotiate with this Government and inasmuch as he is thoroughly familiar with the whole subject, after having discussed the matter previously with the Department of State and at Paris, this Government would be glad to see the commission headed by President King and would accord him a cordial reception.
Davis